CAPITAL LLC, Board Member at American Public Education APEI, disclosed an insider purchase on May 30, based on a new SEC filing.
What Happened: In a recent Form 4 filing with the U.S. Securities and Exchange Commission on Friday, LLC increased their investment in American Public Education by purchasing 134,054 shares through open-market transactions, signaling confidence in the company’s potential. The total transaction value is $3,976,086.
The latest update on Friday morning shows American Public Education shares up by 1.2%, trading at $29.45.
Unveiling the Story Behind American Public Education
American Public Education Inc provides online and campus based postsecondary education including various undergraduate and graduate degree programs. The fields of study include business administration, health science, technology, criminal justice, education, liberal arts, national security, military studies, intelligence, and homeland security. There are three reporting segments: the American Public University segment which is the key revenue generator; the Rasmussen University Segment and the Hondros College of Nursing segment. The revenue is generated from net course registrations and enrollment, tuition rate, net tuition, and other fees.
Breaking Down American Public Education’s Financial Performance
Revenue Growth: American Public Education displayed positive results in 3 months. As of 31 March, 2025, the company achieved a solid revenue growth rate of approximately 6.55%. This indicates a notable increase in the company’s top-line earnings. When compared to others in the Consumer Discretionary sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Holistic Profitability Examination:
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Gross Margin: The company sets a benchmark with a high gross margin of 54.46%, reflecting superior cost management and profitability compared to its peers.
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Earnings per Share (EPS): American Public Education’s EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of 0.42.
Debt Management: American Public Education’s debt-to-equity ratio surpasses industry norms, standing at 0.74. This suggests the company carries a substantial amount of debt, posing potential financial challenges.
Financial Valuation:
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Price to Earnings (P/E) Ratio: The current P/E ratio of 28.53 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.
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Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 0.84, the stock presents an attractive valuation, potentially signaling a buying opportunity for investors interested in sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With a lower-than-industry-average EV/EBITDA ratio of 10.32, American Public Education presents a potential value opportunity, as investors are paying less for each unit of EBITDA.
Market Capitalization Perspectives: The company’s market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.
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Uncovering the Importance of Insider Activity
While insider transactions should not be the sole basis for making investment decisions, they can play a significant role in an investor’s decision-making process.
In the context of legal matters, the term “insider” refers to any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities, as outlined by Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are obligated to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.
Pointing towards optimism, a company insider’s new purchase signals their positive anticipation for the stock to rise.
Despite insider sells not always signaling a bearish sentiment, they can be driven by various factors.
Exploring Key Transaction Codes
Surveying the realm of stock transactions, investors often give prominence to those unfolding in the open market, systematically detailed in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
Check Out The Full List Of American Public Education’s Insider Trades.
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This article was generated by Benzinga’s automated content engine and reviewed by an editor.
